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Press Release

Frederick Man Sentenced For Fraudulently Receiving At Least $110,000 In Disability Benefits

For Immediate Release
U.S. Attorney's Office, District of Maryland

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Charles David Jones, Sr., age 58, of Frederick, today to a year and a day in prison, followed by three years of supervised release, for theft of government property arising from his fraudulent receipt of disability benefits. Judge Quarles also ordered that Jones pay $110,000 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to his plea agreement, in March 2002, Jones filed for disability benefits with the Social Security Administration (SSA), claiming that he could no longer work and was disabled. He agreed to notify SSA if he started to work as an employee or through self-employment.

Starting sometime in July 2002, Jones began working as a cook at Lohr’s Family Restaurant in Frederick. Within a few months, he was promoted to manager and head chef. Witnesses stated that Jones supervised other employees and handled some of the cooking for the restaurant himself. Jones never reported this work to the SSA.

Instead, in November 2002, Jones requested a hearing on his application for disability and filed additional forms in support of his disability benefits application. He falsely claimed that he was not working and could not work. Wage and earnings reports confirm that Jones was receiving a salary from Lohr’s Family Restaurant at this time.

On October 13, 2003, Jones purchased Lohr’s Family Restaurant. Jones continued to manage and operate the restaurant. Witnesses also confirmed that through at least August 2011, Jones remained actively involved in managing the restaurant, supervising employees, cooking, developing the menu, and running the catering side of the business.

In February 2004, Jones was awarded disability benefits by SSA, retroactively to August 2002. Jones continued to receive benefits until they were suspended in 2011. Jones received at least $110,000 in benefits due to his false application for benefits.

In March 2010, Jones signed and submitted to SSA a report claiming that he was not working, and was not able to work. He described his activities for a typical day without mentioning the restaurant.

United States Attorney Rod J. Rosenstein praised the SSA - OIG for its work in the investigation and thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.

Updated January 26, 2015